Key Points

• Learn how to report self-employment income using TurboTax, specifically for 1099-NEC forms.
• Understand what business expenses can be deducted and how to organize them effectively.
• Get insights on vehicle deductions and home office expenses for Uber drivers and similar gig workers.

Introduction

In this video, the presenter discusses how to report self-employment income from IRS Form 1099-NEC using TurboTax. The information is relevant for the 2021 tax year but applicable to current tax rules as well. Introduction to self-employment income.

Understanding 1099 Forms

• Self-employment income is reported using forms like 1099-NEC and 1099-K. Understanding 1099 forms.
• The IRS considers anyone receiving these forms as a business, allowing for the deduction of ordinary and necessary expenses. IRS business classification.

Deductible Business Expenses

• It's crucial to keep track of all business expenses that are necessary for income generation. Tracking business expenses.
• Different professions have different deductible expenses; for example, a video game streamer can write off gaming equipment, while an accountant cannot. Examples of deductible expenses.

Profit and Loss Statement

• The presenter recommends creating a Profit and Loss (P&L) statement to organize income and expenses before filing taxes. Creating a P&L statement.
• A downloadable template for the P&L statement is available on the presenter's website. Download P&L template.

Entering Income in TurboTax

• The video demonstrates entering self-employment income from Uber as an example. Entering Uber income.
• It's essential to ensure the correct codes are used to avoid IRS flags. Avoiding IRS flags.

Claiming Expenses

• Common expenses for Uber drivers include vehicle expenses, service fees, and phone costs. Claiming Uber expenses.
• The presenter emphasizes the importance of tracking mileage for deductions. Tracking mileage.

Vehicle Deductions

• Uber drivers can choose between standard mileage or actual expenses for vehicle deductions. Choosing vehicle deductions.
• The standard mileage rate for 2021 was 56 cents per mile. Standard mileage rate.

Home Office Deduction

• The presenter explains the criteria for claiming a home office deduction, emphasizing regular and exclusive use. Home office deduction criteria.
• Calculating the deduction based on square footage is also discussed. Calculating home office deduction.

Conclusion

• The video wraps up with a summary of the process and encourages viewers to ask questions in the comments. Conclusion and Q&A.

Comment Summary & Sentiment

The comments reflect a positive sentiment, with viewers expressing gratitude for the detailed explanations and asking specific questions about TurboTax and self-employment deductions. Many found the video helpful for understanding their tax filing process.